With 41% stake, Hamilton Beach Brands Holding Company (NYSE:HBB) seems to have captured institutional investors' interest
Key Insights
Institutions' substantial holdings in Hamilton Beach Brands Holding implies that they have significant influence over the company's share price
A total of 17 investors have a majority stake in the company with 51% ownership
If you want to know who really controls Hamilton Beach Brands Holding Company (NYSE:HBB), then you'll have to look at the makeup of its share registry. And the group that holds the biggest piece of the pie are institutions with 41% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
Since institutional have access to huge amounts of capital, their market moves tend to receive a lot of scrutiny by retail or individual investors. Hence, having a considerable amount of institutional money invested in a company is often regarded as a desirable trait.
Let's delve deeper into each type of owner of Hamilton Beach Brands Holding, beginning with the chart below.
Check out our latest analysis for Hamilton Beach Brands Holding
What Does The Institutional Ownership Tell Us About Hamilton Beach Brands Holding?
Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.
Hamilton Beach Brands Holding already has institutions on the share registry. Indeed, they own a respectable stake in the company. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Hamilton Beach Brands Holding's earnings history below. Of course, the future is what really matters.
Hedge funds don't have many shares in Hamilton Beach Brands Holding. Columbia Management Investment Advisers, LLC is currently the company's largest shareholder with 5.2% of shares outstanding. The second and third largest shareholders are Abigail Ii LLC and Alfred Rankin, with an equal amount of shares to their name at 5.0%. Alfred Rankin, who is the third-largest shareholder, also happens to hold the title of Chairman of the Board. In addition, we found that Gregory Trepp, the CEO has 2.4% of the shares allocated to their name.
A closer look at our ownership figures suggests that the top 17 shareholders have a combined ownership of 51% implying that no single shareholder has a majority.
Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.
Insider Ownership Of Hamilton Beach Brands Holding
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.
Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.
Our information suggests that insiders maintain a significant holding in Hamilton Beach Brands Holding Company. Insiders have a US$126m stake in this US$410m business. We would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. You can click here to see if those insiders have been buying or selling.
General Public Ownership
The general public, who are usually individual investors, hold a 22% stake in Hamilton Beach Brands Holding. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.
Private Company Ownership
Our data indicates that Private Companies hold 6.3%, of the company's shares. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.
Next Steps:
It's always worth thinking about the different groups who own shares in a company. But to understand Hamilton Beach Brands Holding better, we need to consider many other factors. To that end, you should be aware of the 2 warning signs we've spotted with Hamilton Beach Brands Holding .
If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, backed by strong financial data.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.